December Biodiesel Margins Slip Back into the Red with Soybean Oil as Feedstock

A majority of the feedstock used in biodiesel production in the U.S. comes from soybean oil.  To look at the health of the industry, soybean oil-based biodiesel margins provide some insight. 

Biodiesel margins continued to trend lower in the final two weeks of 2021 as softer biodiesel and reduced glycerin prices were met with rising soybean oil costs. During the first two weeks of 2022, margins moved lower during the first week but rebounded in the second week as soybean oil prices shifted lower.

NOPA released their December crush data for December.  The crush hit an all-time high in December of 186.4 million bushels crushed.  The record crush helped lift soybean oil stocks to a 20-month high of 2.031 billion pounds.

Despite the record crush, the USDA left its crush projections unchanged for the current crop season at 2.19…